EUR/USD: Topside still favoured - Commerzbank

Axel Rudolph, analyst at Commerzbank, points out that the EUR/USD pair has reached the 55 day moving average at 1.1254 and they continue to favour the topside even though short-term further consolidation below the current May high at 1.1264 is expected to be seen.

Key Quotes

“We expect the cross to remain above the March and early April lows at 1.1183/77. Unexpected failure there would put the 1.1110 April low back on the map. Be advised that the pattern being traced out is a potential large bullish reversal pattern.”

“We have positive divergence on the weekly RSI and a Tom DeMark 13 count on the weekly chart. Overhead lie the 100 day ma at 1.1315 and the September-to-May resistance line at 1.1333. Further up meanders the 200 day moving average at 1.1396.”

“Support at 1.1110 is regarded as the break down point to the 2018-2019 support line at 1.1099 and the 1.0814 78.6% Fibonacci retracement.”